Utility (TSX:UTC.C) ROC %: 5.93% (As of Nov. 2017)

What is Utility ROC %?

Utility TSX:UTC.C ROC % is 5.93% as of Nov. 2017.

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Utility's annualized return on capital (ROC %) for the quarter that ended in Nov. 2017 was 5.93%.

As of today (2026-07-02), Utility's WACC % is 0.00%. Utility's ROC % is 0.00% (calculated using TTM income statement data). Utility earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Utility (TSX:UTC.C) ROC % Explanation

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.

There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.

Why is ROC % important?

Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.

As of today, Utility's WACC % is 0.00%. Utility's ROC % is 0.00% (calculated using TTM income statement data). Utility earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Be Aware

Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Utility ROC % Related Terms

Utility ROC % Historical Data

* Premium members only.

The historical data trend for Utility's ROC % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Utility ROC % Chart

Utility Annual Data

Trend

May08

May09

May10

May11

May12

May13

May14

May15

May16

May17

ROC %

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28.31

9.43

6.16

-26.30

111.43

Utility Semi-Annual Data
	May08	Nov08	May09	Nov09	May10	Nov10	May11	Nov11	May12	Nov12	May13	Nov13	May14	Nov14	May15	Nov15	May16	Nov16	May17	Nov17
ROC %	Get a 7-Day Free Trial															-40.46	28.01	76.61	147.07	5.93

Utility ROC % Calculation

Utility's annualized Return on Capital (ROC %) for the fiscal year that ended in May. 2017 is calculated as:

	ROC % (A: May. 2017 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: May. 2016 )	+	Invested Capital (A: May. 2017 ))	/ count )
=	9.444 * ( 1 - 0% )	/	( (8.441	+	8.51)	/ 2 )
=	9.444	/	8.4755
=	111.43 %

where

	Invested Capital		(A: May. 2016 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	53.856	-	0.011	-	( 53.698	-	max(0, 8.452	-	53.856	+	53.698	))
=	8.441

	Invested Capital		(A: May. 2017 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	56.531	-	0.016	-	( 56.374	-	max(0, 8.526	-	56.531	+	56.374	))
=	8.51

Utility's annualized Return on Capital (ROC %) for the quarter that ended in Nov. 2017 is calculated as:

	ROC % (Q: Nov. 2017 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: May. 2017 )	+	Invested Capital (Q: Nov. 2017 ))	/ count )
=	2.172 * ( 1 - 0% )	/	( (8.51	+	64.801)	/ 2 )
=	2.172	/	36.6555
=	5.93 %

where

	Invested Capital		(Q: May. 2017 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	56.531	-	0.016	-	( 56.374	-	max(0, 8.526	-	56.531	+	56.374	))
=	8.51

	Invested Capital		(Q: Nov. 2017 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	56.714	-	0.27	-	( 0.285	-	max(0, 8.776	-	0.419	+	0.285	))
=	64.801

Note: The Operating Income data used here is two times the semi-annual (Nov. 2017) data. The tax rate is limited to between 0% and 100%.

Frequently Asked Questions Learn more about ROC % →

What does a ROC % of 5.93% mean?

Utility (TSX:UTC.C) has a ROC % of 5.93% as of Nov. 2017. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Utility and its competitors.

Is Utility's ROC % too high?

Utility's current ROC % is 5.93%. The Asset Management industry median ROC % is 1.18. Utility's value of 5.93% is 402.5% above this industry median.

How does Utility's ROC % compare to PHCF?

Utility's ROC % of 5.93% can be compared against companies in the Asset Management industry. The industry median ROC % is 1.18. Utility's value of 5.93% is 402.5% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good ROC % for an Asset Management company?

The median ROC % among Asset Management companies is 1.18, based on 707 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Utility's current ROC % of 5.93% is 402.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.

What does a high ROC % mean?

A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Utility and its competitors. For the Asset Management industry, the median ROC % is 1.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Utility's current ROC % is 5.93%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Utility stock overvalued right now?

Utility (TSX:UTC.C) has a current ROC % of 5.93%. The current ROC % is 5.93% and 402.5% above the Asset Management industry median of 1.18. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.

How is ROC % calculated?

ROC % is calculated from a company's financial statements. For Utility (TSX:UTC.C), the current ROC % is 5.93% as of Nov. 2017. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Utility Business Description

Industry Financial Services Asset Management

Comparable Companies FRA:PEH TSXV:FCF LSE:FEN LSE:SIGB KUW:MUBARRAD WAR:QRS LSE:STM LSE:MIL XKRX:205470 XTER:T5O XSWX:RUS KUW:OSOUL XCNQ:GPK HKSE:02312 IST:VERTU HAM:EBS ROCO:8913 HKSE:00174 PHCF WAR:SKH

Address 40 King Street West, P.O. Box 4085, Scotia Plaza, 26th Floor, Toronto, ON, CAN, M5W 2X6

Website http://www.scotiamanagedcompanies.com

Utility Corp is a mutual fund corporation. The company holds a diversified investment portfolio (the Portfolio) of common shares (the Portfolio Shares) of selected Canadian electrical, power and utility and telecommunication companies in order to provide investors (the Shareholders) with a stable monthly dividend stream and capital appreciation potential.